The Lagos State Innovation Bill has introduced a groundbreaking proposal for the establishment of a Research and Development Innovation Fund (RD&I Fund) aimed at driving science, technology, and innovation within the state — potentially becoming one of Africa’s largest government-backed tech investment vehicles.
Key Numbers:
- 1.5% of annual capital budget allocated initially
- 2% target allocation within 10 years
- Estimated $100M+ in total funding potential
Under the draft legislation, the Lagos State Government would commit at least 1.5% of its annual capital budget to the RD&I Fund and the development of research, science, and technology infrastructure. This allocation is strategically designed to increase to 2% within ten years of the bill’s enactment, creating a sustainable funding pipeline for Nigeria’s most economically significant state.
The funding model extends beyond government allocation, incorporating multiple revenue streams including innovation bonds, private donations, grants, and income generated from partnerships, royalties, and dividends — creating a self-sustaining ecosystem for tech development.
Beyond Capital: Building a Comprehensive Innovation Ecosystem
The RD&I Fund’s scope encompasses translating academic research into commercially viable products with strong societal impact, providing matching funds for industry-academia collaborations, and offering seed capital for emerging innovative enterprises.
The initiative also targets infrastructure development, financing the creation and modernization of high-end facilities such as innovation hubs, technology parks, incubators, and accelerators.
A particularly noteworthy component addresses Nigeria’s brain drain challenge through targeted support for “Repatriated Tech Talents” — highly skilled Nigerians abroad who would receive startup funding, laboratory space, and comprehensive integration support to establish operations back home.
Additionally, the fund will sponsor scholarships, fellowships, and innovation bootcamps to cultivate the next generation of innovators, ensuring a strong local talent pipeline.
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